May 19 - Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA) are trading at their lowest collective valuation since 2018, according to a note from Goldman Sachs strategist David Kostin.

Warning! GuruFocus has detected 4 Warning Signs with NVDA.

The group's next-twelve-month price-to-earnings ratio stands at about 28x on aggregate, versus roughly 20x for the broader S&P 493, a 43% premium that sits in the 30th percentile of the past decade.

Kostin said the recent pullback likely reflects investor caution over heavy AI spending, shifting trade policies, and ongoing antitrust actions. Yet, the median stock in the cohort currently trades at a slight discount to what Goldman's cross-sectional model would suggest based on forecasts for earnings growth and balance-sheet strength.

He noted risks run both ways. In the near term, lighter positioning, lower relative multiples, and renewed AI enthusiasm after first-quarter earnings may support these shares. However, Alphabet, Apple, Microsoft, and Meta face active antitrust probes in the US and Europe.

Competitive pressure also remains a concern. Recent reports of Apple's plans for an AI-driven search feature sent Alphabet's shares down by about 7%, highlighting the margin for disruption within the elite seven.

This article first appeared on GuruFocus.

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